Canadian Stocks Move Notably Lower Amid Renewed Trade Concerns

Extending the pullback seen over the two previous sessions, Canadian stocks have shown a notable move to the downside during trading on Tuesday.

The S&P/TSX Composite Index came under pressure early in the session and currently remains down 110.97 points or 0.7 percent at 16,870.50.

Renewed trade concerns are weighing on the markets after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with China.

Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, "In some ways, I think it's better to wait until after the election."

"But they want to make a deal now, and we'll see whether or not the deal's going to be right; it's got to be right," Trump said.

Trump claimed a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is "doing very well" and China is "having by far the worst year that they have had in 57 years."

The comments from the president added to rising trade concerns after his administration threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.

Energy stocks have moved notably lower amid worries about the outlook for demand, with the S&P/TSX Capped Energy Index slumping by 1.3 percent.

Financial, industrial and consumer discretionary stocks are also seeing considerable weakness, while materials stocks are bucking the downtrend amid a sharp increase by the price of gold.